ISLAMABAD: The Asian Development Bank (ADB) on Wednesday upgraded Pakistan’s economic growth forecast for the current fiscal year due to a less severe-than-anticipated impact of flooding, increased public investment, and anticipated stabilising inflation.

In its Asian Development Outlook December 2025, the Manila-based lending agency also revised the growth outlook for the South Asian Region upward for the current year.

“In the case of South Asia, growth forecasts for 2026 have been revised upward for Sri Lanka and Pakistan, respectively, due to increased public investment and a less-severe-than-anticipated impact of flooding,” it said in its latest report without actually saying where it expected Pakistan’s growth to settle for the year. In July, the ADB had set a 2026 growth forecast for Pakistan at 3pc and had kept it unchanged........

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